Diversified Oil and Gas Holdings (DVFI)

[Imperial Whazoo]

Thanx man...
As a newbie, I have only 3 posts. This will be #2, so I'll apologize ahead of time for not replying further. Gotta ration them, man.

I think that the past tells us that, once completed, it takes about 2 weeks to stabalize production rates. Given that the LOI is tied to the value of the completion (ie... flow rate), it follows that the press release on the completion of #3 needs to be sufficiently ahead of the 8/31 LOI extension deadline to effectuate the timely closing of the deal. So, I would be inclined to think that the news of a successful completion of #3 should be really soon. It is likely that both #3 & #4 are tied in terms of valuation to the successful closing of the LOI. So, the sooner #3 gets reported, the greater the likelihood that #4 will complete in time to avoid expiration of the extension on the LOI.

We can not know for sure if both #3 & #4 have to report solidly to close the LOI or whether only #3 has to. My guess is that both do. In the past, I recall that fully 6 weeks passed on #2 (maybe the first well.... I haven't time to check back right now to be sure of my facts but I do recall that one of them waited 6 weeks during which it went unreported despite it having been completed). So, there is a pretty good chance that #3 is already completed and maybe #4 as well. In any event, if the completing of the two is necessary to close the LOI, let us hope that Lancaster didn't wait too long before giving in and agreeing to tie the value of future income streams to the closing of the LOI.

ImperialWhazoo